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Northern Cape Business 2020/21 edition

  • Text
  • Development
  • Africa
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  • Agriculture
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The 2020/21 edition of Northern Cape Business is the 10th issue of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide for the Northern Cape Province. Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication has a particular focus on specific, packaged, investment opportunities. These include plans for the establishment of Special Economic Zones (SEZs) within the province, which have specific incentives designed to make investment into the Northern Cape even more attractive. The hi-tech exploits of astronomers and engineers in search of a landspeed record are the focus of an article on engineering sector while the rapidly expanding solar energy sector which continues to attract significant capital is discussed in some detail.

OVERVIEW Agriculture

OVERVIEW Agriculture Rooibos is a hit around the world. Image: Bokkeveld Rooibos From a funky coffee bar in Des Moines, Iowa, to the refined palates of discerning Japanese tea-drinkers, rooibos is on trend around the world. And that’s good news for farmers and producers in the Northern Cape. Bill Bryson was famously sniffy about the sophistication of his hometown in the middle of America, but at Zanzibar’s Coffee Adventure in downtown Des Moines, red cappuccino is now a popular favourite. Using rooibos allows for any style of espresso that comes without the caffeine kick. Rooibos has not yet made a big dent in the 200 000 tons of tea consumed by Japan every year, but sales grew 7% in 2018 and introducing a new variety to a country of tea aficionados is easier than tackling a nation of coffee drinkers. A total of 2 000 tons were shipped to Japan from South Africa in 2018. Rooibos is competing in the “Healthy Tea” segment and a popular restaurant chain’s decision to use the tea as a complement to its pork bone broth has helped to promote the product. Brazil is being explored as a potential market. Recent studies proving that rooibos tea increases antioxidant capacity in human blood are further proof of the beverage’s healthy qualities. The unique climate and soil of the western part of the province support this niche crop. About 6 000 tons of tea is exported to more than 30 countries and domestic consumption is about 8 000 tons. The South African Rooibos Council states that more than 5 000 Sector Insight • Food security is a key concern for social planners. • The successful goat kid project has expanded to Botswana. people are employed in the rooibos industry. Only the leaves of the Aspalathus linearis (a legume that is part of the fynbos family) are used in making rooibos (Afrikaans for “red bush”). Harvested while still green, the leaves are left to dry and ferment in the sun after being cut up. Naturally high in a range of vitamins and potassium, zinc and iron, its low tannin content makes it an excellent alternative as a hot drink. Another niche product of the Northern Cape is karakul NORTHERN CAPE BUSINESS 2020/21 32

OVERVIEW pelt, which is a speciality of the Gordonia district of Upington. This exclusive product is distributed via the capital of Denmark and the Italian fashion capital of Milan. Copenhagen is the site of two auctions of karakul pelts that are held annually. Agri-company KLK is the only organisation that handles these pelts in South Africa. Glovemakers in Milan are among the international clients to whom farmers of the dorper sheep breed sell the wrinkle-free skins of their sheep, at good prices. Another exclusive niche is horse stud breeding, a speciality of the area around Colesberg, where the cold evenings and warm days combine to drive out disease and promote strong growth. Among the studs are Henham and Southford, a 900ha property near the Gariep Dam which once was home to the famous stallion “Damask”. Compared to other types of manufacturing, agri-processing can be scaled up relatively quickly with good financial rewards. It can also be labour-intensive. As such, agri-processing is a key plank in the growth plans of the Northern Cape. Work has already been done in providing manufacturing facilities for rooibos at Niewoudtville and investments have been made in fisheries and new vineyard development for groups of people who previously had not had exposure to the grape and wine sector. The Northern Cape Department of Agriculture, Land Reform and Rural Development (DALRRD) was behind the rooibos tea factory, which now trades as Bokkeveld Rooibos. The factory takes tea from 85 local farmers with the goal of helping to integrate these farmers into the agricultural and agri-processing business chain. Two areas of interest to assist small-scale farmers are being explored with regard to hemp and crops that can produce liquor. The dry interior of the Northern Cape is suitable for the growing of Agave that provides the source material for tequila and there are several other opportunities. The rapidly-changing legislative environment for hemp and marijuana holds potential in textiles and medicine. A programme to empower black farmers is supporting six farmers in 2020. The Commercialisation of Black Producers Programme targets farming and agri-processing in the expectation that graduates will mentor young people and create employment. The commercialisation of the goat project which was successfully extended to Namibia has now been further expanded to include Botswana. Small-scale farmers are being given access to market and further expansion is expected. Food security The Integrated Food Security and Nutrition Programme aims to promote and support urban agriculture and to support community and institutional food gardens. Beneficiaries practising poultry farming in their backyards will receive broilers and layers for egg production. This will improve household nutrition and generate income. Long-term thinking underpins the adoption by the provincial government of the Northern Cape Climate Change Adaptation Response Strategy. This allows for a framework to tackle drought and other climate change issues. Occupying 36-million hectares, the Northern Cape is the largest province in the country, almost a third of South Africa’s total land area. Although the province is a predominantly semi-arid region, agriculture is a major component of the regional economy and the province’s farmers contribute 6.8% to South African agriculture. The agricultural sector also plays a vital role in the broader economy of the Northern Cape, employing as it does about 45 000 people. This represents about 16% of employment, a much higher figure than the national figure of 5.5%. Online Resources Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Northern Cape Economic Development, Trade and Investment Promotion Agency: www.nceda.co.za South African Pecan Nut Producers Association: www.sappa.za.org South African Rooibos Council: www.sarooibos.co.za Zanzibar’s Coffee Adventure: www.zanzibarscoffee.com 33 NORTHERN CAPE BUSINESS 2020/21

Other recent publications by Global Africa Network:

African Business 2020 edition
South African Business 2020 edition
KwaZulu-Natal Business 2020-21 edition
Northern Cape Business 2020/21 edition
Eastern Cape Business 2020 edition
Western Cape Business 2020 edition
Free State Business 2020 edition
Mpumalanga Business 2019/20 edition
Limpopo Business 2019-20 edition
Gauteng Business 2019-20 edition
KwaZulu-Natal Business 2019-20 edition
Northern Cape Business 2019/20 edition
Free State Business 2019 edition
Eastern Cape Business 2019 edition
North West Business 2019 edition
Western Cape Business 2019 edition
South African Business 2019 edition
Limpopo Business 2018-19 edition
Mpumalanga Business 2018-19 edition
Northern Cape Business 2018-19 edition
Gauteng Business 2018-19 edition
KwaZulu-Natal Business 2018-19 edition
Eastern Cape Business 2018 edition
North West Business 2018 edition
Western Cape Business 2018 edition
Free State Business 2018 edition
South African Business 2018 edition
Limpopo Business 2017-18 edition
Mpumalanga Business 2017-18 edition
Gauteng Business 2017-18 edition
KwaZulu-Natal Business 2017-18 edition
Northern Cape Business 2017-18 edition
North West Business 2017 edition
Free State Business 2017 edition
Eastern Cape Business 2017 edition
Western Cape Business 2017 edition
South African Business 2017 edition
Mpumalanga Business 2017 edition
Limpopo Business 2016-17 edition
KwaZulu-Natal Business 2016-17 edition
South African Business 2016 edition
Gauteng Business 2016 edition
Eastern Cape Business 2016 edition